Multiple Choice
When the IS curve is drawn with the nominal interest rate on the vertical axis, a reduction in the expected inflation rate will cause:
A) the IS curve to become flatter.
B) no change in the IS curve.
C) the IS curve to shift rightward.
D) the IS curve to become steeper.
E) the IS curve to shift leftward.
Correct Answer:
Verified
Correct Answer:
Verified
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